Technically sound C&I solar projects are still stalling between quote and final approval. Increasingly, the challenge isn’t the technology itself, but financing, risk and how the deal is structured.
A business wants solar. The technical solution works. The system is well designed and appropriately sized. But somewhere between the quote and final approval, the project stalls.
It’s an increasingly familiar challenge in South Africa’s commercial and industrial (C&I) solar market. A prospective customer may want solar, but when the conversation reaches capital allocation, financial approval or the structure of ownership and risk, progress can stall. For the customer, the decision to move forward is rarely about the hardware specifications alone. Cash flow impact, balance sheet treatment, performance risk and who carries long-term responsibility for the asset all play a role.
It was this gap between a technically sound solar proposal and a financed, executable project that came under the spotlight at the recent GoodWe Summit, during the “Beyond the Quote: Financing Solar Deals That Close” panel.
The discussion brought together perspectives from across the C&I solar value chain, including Richard Flamand, South Africa Lead at Candi Solar; Jonathan Matheson, CEO of MetSolar; and Prenasen Pillay, Head of Department: Procurement at Discovery Limited.
But the challenge extends well beyond any single industry discussion: what does it take to turn more technically sound solar proposals into projects that actually get built?
The real bottleneck is not always technology
Financing can fundamentally change the commercial equation.
Unlike conventional bank finance, which funds an asset but does not necessarily transfer the performance risk associated with it, Candi Solar’s PPA model links financing directly to the system’s operational performance.
Candi funds, builds and manages the solar asset, and the customer pays only for the electricity the system generates. If the system underperforms, Candi carries the cost.
This distinction matters because it reframes the financing conversation. Instead of asking whether the customer can afford the upfront capital, the question becomes whether the project meets the criteria for performance-linked financing.
For businesses that want solar but cannot, or do not want to, fund the upfront cost, this creates another potential route from proposal to project.
Bring financing into the conversation earlier
Financing is often treated as something to address once the technical solution has been developed. Bringing it into the conversation earlier, ideally before the technical design is completed, can help establish whether a project is financeable and which commercial structure is most likely to work for the customer.
Speed, clarity and clearly defined project criteria matter. Understanding what makes a project financeable can prevent installers and EPCs from pursuing deals that are unlikely to close, while opening up alternative routes for customers who are ready for solar but constrained by upfront capital requirements.
The principle is straightforward: a technically sound project should not necessarily be lost because the customer cannot or does not want to fund the upfront cost. With the right financing partner, there may be another route to approval.
A shift in how C&I solar deals get done
South Africa’s C&I solar market is maturing. As the industry moves beyond the early phase of emergency diesel displacement and load-shedding response, the focus is shifting towards structured, financeable deals that work as long-term business arrangements.
For customers, the cheapest quoted system is not necessarily the strongest commercial proposition. The financial structure of a solar deal, and who remains responsible for its long-term performance, matters alongside the technical specification.
For installers and EPCs, financing increasingly needs to be considered as part of the project strategy rather than an afterthought.
Bringing that conversation forward can help turn more technically sound solar proposals into completed, revenue-generating projects.